Current Uses of Computers in UK Business

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Current Uses of Computers in UK Business
Industry
October 2005
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Contact Details
Glyn Braganza Treasury Technology email
glyn.braganza_at_gs.com
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Lecture Contents

• About Goldman Sachs
• What is our Business?
• Where does Technology fit in?
• Business Concerns - How Technology Helps
• GS Technology case study Treasury Banking
  System
• Questions Answers

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About Goldman Sachs

• Founded in 1869
• First European office established in 1970
• Went public in 1999
• 20,800 employees globally (3,763 in Technology)
• 5,171 employees in Europe (714 in Technology)
• Revenues in 2004 - 20,550 million
• Net Earnings in 2004 - 4,553 million
• Approx 2,000,000,000 annual technology spend

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About Goldman Sachs
Over 50 Offices Worldwide
Tokyo
New York
Hong Kong
London
Bangalore
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What is our business?
Investment Banking
Investment Management
Global Investment Research
Equities
Merchant Banking
Technology
Fixed Income, Currency and Commodities
Human Capital Management
Operations Finance
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What is our structure?
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Application Development

• All aspects of the project lifecycle
• Gathering user requirements
• Business problem solving
• Systems design
• Development maintenance
• Evaluating new technologies
• Trouble shooting systems issues
• Creating New Businesses

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Our Development Environment
Windows NT/2000/XP Solaris Sybase MS SQL
Server UDB Apache WebServer Linux .Net

• HTML, Perl JAVAScript
• C
• JAVA
• Cobol
• C
• Visual basic
• XML
• XSL

and anything else we need
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Technology Infrastructure

• Systems Administration
• User Support Groups
• Tech Operations
• Telecommunications
• Market Data
• Information Security
• GSTV

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Our Infrastructure in 2004

• Total no. of UNIX servers in Europe
  3,400
• Total no. of PC workstations in Europe
  7,000
• Total no. of network connections in Europe
  20,000
• Total no. of market data users in Europe
  1,200
• Approx. data storage available in Europe
  80 terabytes
• Approx. data storage available globally
  gt3 petabyte
• Rate of data storage growth? 2004-2005 up 50

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Our Infrastructure in 2004

• Network
• 4 x 155 mb London - NY circuits
• Our network has 220 routers, 419 switches and
  56,000 ports
• WAN bandwidth between London NY 290 mbps
• Monitoring
• We send half a million system alerts a week
• 97 of these are dealt with automatically
• Telephony
• We made 15 mn outgoing calls last year
• We have 19 PABXs - the largest implementation in
  the UK

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Project Drivers

• New Business Opportunity
• Market Initiatives
• IT Strategy
• Operational Efficiency
• Performance and Stability
• Regulatory Requirements

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Business Concerns

• Reputation
• Regulatory Issues
• Risk
• Control
• Security
• Speed of Information
• Time to Market
• Business Continuity Planning

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A Project Case study
Treasury Banking System
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Contents
Overview of the Treasury Business Project
Drivers Project Scope Project Execution
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Overview of Treasury
Disburse funds and reconcile bank accounts
Monitor all cash moving on and off firms bank
accounts Manage the firm's intra-day liquidity
by providing funding for the firms operating
entities Protect firms reputation and assets by
serving as the final check point for all fund
transfers
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Overview of Treasury
Process a daily cash flow of USD 350 Billion
Maintains clearing relationships in gt50
Countries Interact with over 120 agent banks
across the world 50,000 transactions settled
daily Manage 3500 nostro accounts
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Overview of Treasury

• Goldman Sachs manages its bank accounts in the
  same way as an individual with their own private
  accounts
• Receive and record statements
• Ensure all transactions are recorded
• Compare expected movements to actual movements
• Execute payments and confirm receipts
• Ensure that there are sufficient balances

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Current Architecture
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Project Drivers
Business requires improved High Availability New
requirement to operate business independently in
specific locales Affiliates acquired by GS
require integration and inter-operability with
Treasury systems Recent regulatory changes have
increased need for automated payment controls
(OFAC checking, Patriot act, SOX etc.) Realized
cost savings associated with eliminating
mainframe technologies that are reaching
end-of-life
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Business Concerns

• Reputation
• Regulatory Issues
• Risk
• Control
• Security
• Speed of Information
• Time to Market
• Business Continuity Planning

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Stake holders
Business Steering Committee
External Audit
Internal Audit
Project Steering Committee
Project Management
Technology Core Team
Operations Core Team
Extended User Community
Extended Technology Community
When in doubt, over-communicate!!
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Project Scope

• Multi-year, Multi-Million Dollar project to
  provide the Firms strategic Treasury System
• Streamlined real time STP of outbound payments
• Inbound receipt processing real time matching,
  settlements, artificial intelligence
• Books and Records processing real time updates
  to general ledger and sub-ledger

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TBS Architecture
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Technology Choices

• Platform
• OS Linux
• Database UDB
• Language Java
• Challenges
• High availability (24x7)
• Scalability

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Iterative Development

• Structure project as multiple mini cycles for
  timely feedback
• Functional system at the end of each iteration
• Completion determined by test coverage and
  overall code quality
• Enable and encourage user feedback
• Continuous full breadth test environment
  available to the users with the latest iteration
  of the code base installed

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Deployment

• Phased Deployment
• Bank Interface
• Books-and-Records
• Input Router
• Payment Pipeline
• Receipts and Adjustments

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Careers in Goldman Sachs Technology

• Goldman Sachs has Graduate, Summer Analyst and
  Work Placement positions available.
• Application deadlinesGraduate 9 November
  2005Work Placement 29 November 2005Summer
  Internship 14 January 2006
• You can find information and application forms at
  this link
• http//www.gs.com/careers